Starling profit declines on FCA fine and Covid loan delinquencies

Editorial

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While the challenger increased revenue to £714m in the twelve months to 31 March 2025, from £682m in the prior year, profit before tax declined to £223m from £301m.

The Financial Conduct Authority in October fined Starling Bank £29 million for failings related to its financial sanctions screening. The bank has also taken taken a £28.2m provision in this year’s accounts after removing a Government-backed guarantee erroneously applied to some bounce back loans during the pandemic.

Elsewhere, customer deposits rose to £12.1bn from £11.0bn – primnarily driven by a market-leading savings product – and open accounts inched up from 4.6m from 4.2m.

While the bank views its Software-as-a-Service strategy as a future money-spinner, Engine’s fee income contribution to the group was fairly modest at £8.7m.